Novi Digital, the parent company of digital streaming platform Hoststar received $73.8 million (₹ 516 Cr) from Star US at a valuation of $265 Mn. Novi is a subsidiary arm of Star India Private Limited.
The fresh influx of cash will be used to reduce the increasing loss of Hotstar. Novi Digital witnessed a surge in loss by 20% in FY17 to $70 million (₹489 crrore). At the same time, it recorded a 79% increase in revenues in FY17 leading to a sum of $45.7 million (₹320 crore).
Hotstar, which has 7 lakh paid subscribers in India, is facing stiff competition from other biggies such as Netflix and Prime Video. In India, so far, Amazon Prime Video has 11 million subscribers in stark contrast against Hotstar’s 75 million and Voot’s 22 million subscribers, while Netflix stands at 5 million only.
Recently, Flipkart had partnered with Hotstar to launch a video advertising platform named Shopper Audience Network, which allows brands to target consumers through personalised video advertisements on the latter.
The digital streaming platforms have been offering great amount of content to secure top spot in the segment. As a part of the move, the companies are roping in top filmmakers and actors of the country to collaborate in production.